Following Genmar Industries' filing for Chapter 11 Reorganization in the U.S. Bankruptcy Court, chairman and CEO Irwin Jacobs announced that the court has approved the company's recent requests involved in the proceedings. Jacobs made the announcement in a letter sent to the company's dealer base late last week.
Judge O'Brien (the judge assigned to Genmar's Chapter 11 Reorganization case in the U.S. Bankruptcy Court) approved the company's request for Debtor-in-Possession (DIP) financing as well as authority for the payment of all appropriate past and going-forward employee compensation and benefit expenses. The court also approved Genmar's request to honour appropriate past and ongoing warranty and rebate claims.
“I believe the court's actions provide Genmar dealers and their customers the evidence of Genmar's intention to move successfully through the Chapter 11 proceedings and exit as a stable and strong company,” Jacobs said in the letter.
The letter also stated that Genmar will receive assurances from GE Commercial Distribution Finance to continue support of the sale of Genmar products through its dealer network during the completion of a court-approved agreement with GE.
“While this experience represents the most humbling and difficult business decision of my entire career, I am more motivated than ever by Genmar's opportunities in moving forward. Successfully reorganizing Genmar is now my highest priority,” said Jacobs.